FXI Dividend Type Payments

iShares China Large-Cap ETF dividend

Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
36.62 36.64 36.67 +0.11 34.1M - 7.0B

FXI Dividend-Like Income Using Covered Calls

With FXI at 36.67, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.10 0.3
5% 1.83 0.5
10% 3.67 1.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.00 0.68 40 1.7 0.36 (1.0%)
Apr 4 36.50 0.29 12 1.3 0.00 (0.0%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.00 0.68 40 1.7 0.36 (1.0%)
Apr 4 36.50 0.29 12 1.3 0.00 (0.0%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 37.00 0.68 40 1.7 0.36 (1.0%)
Apr 4 36.50 0.29 12 1.3 0.00 (0.0%)

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Want more examples? FXH Dividend | FXL Dividend